U.S. Foodservice Quadruples Operating Profits

Operating profit at the second largest distributorship in America increased almost four times to $80 million compared with $22 million in the same period last year, reported Ahold in an e-mailed statement that was reported today by various sources, while corporate net income climbed to 236 million euros ($298 million) from 134 million euros a year earlier.

U.S. Foodservice's broadline division reported sales of $87 million compared with $26 million last year.

According to the latest ID Top 50, in 2005, U.S. Foodservice reported $18.5 million in revenues, down $300 million from the previous year.

"U.S. Foodservice performed well as the new strategy takes effect," Anders Moberg, Ahold ceo, said in the statement. "The competitive environment continued to be challenging for Stop & Shop/Giant- Landover and conditions remained difficult in central Europe and at Tops, especially in North East Ohio."

The stock fell 1 cent to 6.58 euros in Amsterdam yesterday. It has added 4 percent this year after gaining 11% in 2005, the first annual climb since 2000. Ahold has a market value of about 10.2 billion euros.


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